Categorized | International

New Zealand Home Prices Drop

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After reaching a two-year high, prices in New Zealand’s residential real estate market fell during the month of October. The market had been experiencing fairly strong gains over the past year, though continued worries about the potential debt crisis in Europe has started to finally take its toll.

There were hopes that the seasonal change would positively impact property sales and values in New Zealand, though that has certainly not been the case. Many prospective homebuyers are opted not to take on more debt over fears that the European debt crisis will once again become a worldwide issue.

As buyers are more becoming more hesitant to purchase new properties, both values and sales volumes are expected to fall further. Many buyers are beginning to more closely evaluate the pricing of properties in order to determine if they are over-priced.

Analysts believe that the drop experienced in New Zealand may extend out to other countries as well. While the European debt crisis has had an impact on European nations and the United States, its impact is now beginning to spread across the globe, as buyers become more and more cautious of the debt that they add to their bottom line.

House prices fell 0.3 percent in New Zealand in comparison to the previous month. Prices are expected to continue dropping in the coming months. There has been no indication as to how long the European debt crisis fears will last, and as such, many nations are growing increasingly worried that there may be a double-dip global recession in the near future.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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